What is the minimum liability coverage per occurrence that Ledgers requires for comprehensive general liability insurance?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
eparers must obtain a paid preparer tax identification number ("PTIN") from the IRS.
Insurance**.** You must obtain and maintain, at your own expense, such insurance coverage as required by your state laws. Moreover, you must obtain and maintain insurance coverage as we require, which may exceed insurance coverage required by your state laws. All insurance policies must name us as an "additional insured" party.
Our current insurance specifications are as follows:
- i "all risk" property insurance coverage for assets of the Franchised Business;
- ii workers' compensation insurance and employer liability coverage with a minimum limit of $100,000 or higher if your state law requires;
- iii comprehensive general liability insurance which includes contractual indemnity with a minimum liability coverage of $1,000,000 per occurrence, or higher if your state law requires;
- iv business interruption insurance;
- v commercial automobile liability insurance of at least $1,000,000 or higher if your state law requires;
- vi
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees must secure comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence. This requirement is in place to protect both the franchisee and Ledgers from potential financial losses resulting from lawsuits or other claims. However, the FDD also states that if state law requires a higher coverage amount, the franchisee must comply with the state's requirement.
In addition to comprehensive general liability insurance, Ledgers franchisees are also required to maintain other types of insurance coverage, including "all risk" property insurance, workers' compensation insurance, business interruption insurance, commercial automobile liability insurance of at least $1,000,000, and professional liability insurance for errors and omissions in the amount of $1,000,000. All insurance policies must name Ledgers as an "additional insured" party.
The insurance requirements outlined in the FDD are typical for franchise systems. Franchisees are generally responsible for obtaining and maintaining adequate insurance coverage to protect their business and the franchisor's brand. The specific types and amounts of coverage required may vary depending on the nature of the business and the laws of the state in which the franchise is located. It is important for prospective franchisees to carefully review the insurance requirements outlined in the FDD and to consult with an insurance professional to ensure that they obtain adequate coverage.